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13 August 2014
Man Sentenced to Maximum 20 Years for Role in Conspiracy to Commit Murder-For-Hire in Shooting of Correctional OfficerRead the Press Release
Contact Person: Stacey Haynes or William Witherspoon (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles announced today that a federal grand jury returned a nine-count Indictment charging Florence resident Willard Lester “Les” Willard, age 51, with conspiracy, smuggling and violations of the Food, Drug and Cosmetic Act. The Indictment alleges that beginning in 2010, Willard ran a fulfillment center for foreign drug companies that illegally sold unapproved pharmaceutical drugs to US residents. He is also accused of selling unapproved prescription drugs to US customers through a website, www.click1market.com, that he maintained and controlled. The Indictment alleges that Willard shipped more than 10,000 packages containing the smuggled drugs.
The case was investigated by Special Agents with the Food and Drug Administration’s Office of Criminal Investigation, working with Homeland Security Investigations and Inspectors with the United States Postal Inspection Service. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Man Sentenced in Federal Court for Failure to Register as a Sex Offender as Required by LawRead the Press Release
PORTLAND, Ore. – Anthony Lee McThrow, 28, formerly residing on the Umatilla Indian Reservation, was sentenced on August 11, 2014, to 30 months in federal prison by U.S. District Judge Michael W. Mosman. In November 2013, McThrow pled guilty to a single count indictment charging failure to register as a sex offender as required by law. McThrow has remained in custody of the U.S. Marshal since his arrest in July of 2013. His sentence was ordered to run concurrently to a state prison sentence for conviction of first degree forgery, he is currently serving.
After McThrow has completed his 30 months in prison, he was ordered to serve three years of federal supervised release. While on supervised release, McThrow will be required to register as a sex offender with the state sex offender registration agency in any state where the defendant resides. He is also required to participate in a sex offender assessment and treatment program.
“The Sex Offender Registration and Notification Act (SORNA) is an important tool to track the location of sex offenders in order to protect children in the community” stated U.S. Attorney Amanda Marshall. “Those who try to elude registration so they can't be tracked are exactly the people who pose the greatest risk to reoffend. My office, along with our law enforcement partners, are committed to finding those who violate federal law by failing to register and holding them accountable."
According to the public filings in the case, McThrow was living on the Umatilla Indian Reservation and required to register as a sex offender every 90 days based on prior convictions for Sex Abuse II and Sex Abuse III in Umatilla County, Oregon. McThrow admitted he knew he was required to register but did not do so in violation of federal law.
The case was investigated by the U.S. Marshal Service. Assistant U.S. Attorney Pamala R. Holsinger prosecuted the case.
Local Pastor Charged for Embezzling over $900,000 from Community CenterRead the Press Release
TULSA, Okla. — Willard Lenord Jones, 63, of Tulsa, Church pastor and former Executive Director of the Greater Cornerstone Community Development Project, was charged today with three counts of wire fraud and one count of subscribing to a false tax return by criminal information.
Danny C. Williams Sr., the United States Attorney for the Northern District of Oklahoma; James E. Finch, the Special Agent in Charge of the Oklahoma City Division of the Federal Bureau of Investigation; and R. Damon Rowe, the Special Agent in Charge of the Dallas Office of Internal Revenue Service Criminal Investigation made the announcement.
According to the Information, from September 2007 to June 2013, Jones defrauded approximately $933,000 from the Church and the Greater Cornerstone Community Development Project. The Greater Cornerstone Community Development Project is a non-profit organization formed to raise money for the building and operation of a community center in South Haven, a neighborhood in West Tulsa.
As the Executive Director, Jones oversaw the design, construction and fundraising for building the Community Center. Jones solicited monetary contributions from donors, including, foundations, corporations, churches and individuals, to fund the development project.
The scheme to defraud charged in the Information accuses Jones of fraudulently transferring funds from Community Center bank accounts to Church bank accounts and then transferring those funds into personal bank accounts; and, that Jones made large cash withdrawals from the Church bank account that he then used for personal expenses.
Rather than pay for construction operating costs of the Community Center, Jones used the proceeds of his fraud scheme for luxury items, including, hotels, restaurants, casinos, liquor, automobiles, a Rolex watch and a mink coat.
In addition, Jones was charged with one count of subscribing to a false 2011 Form 1040 U.S. Individual Income Tax because he didn’t report approximately $390,061 of income on that return.
If convicted, the maximum penalty would be 20 years imprisonment for each count of wire fraud and three years for subscribing to a false tax return. Jones would also forfeit his residence and luxury items; and face entry of approximately one million dollars in criminal forfeiture money judgment.
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorneys Joseph F. Wilson, Kevin C. Leitch, and Catherine Depew on behalf of the United States.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Willard Lenord Jones
Lincoln Co. Man Sentenced to Prison on Federal Arson ChargesRead the Press Release
CHARLOTTE, N.C. – Zulfiqar Ali Kacho, 40, of Vale, N.C. was sentenced today to serve 33 months in prison on a federal arson charge, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also sentenced Kacho to serve one year under court supervision.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division.
According to court documents and today’s court proceedings, in or about March 2013, Kacho solicited an undercover law enforcement agent to burn down the home of a man who, according to Kacho, had purportedly wronged him. Court records show that during a meeting on March 8, 2013, Kacho showed the undercover agent images of the victim’s home, located in South Carolina. At that meeting, Kacho told the undercover agent that he wanted the victim’s home to burn “to the ground,” and provided details to the undercover agent about using gas or petroleum in the crawl space to carry out the arson, court records indicate. On March 13, 2013, Kacho and the undercover agent met again, and over the course of that meeting, Kacho told the undercover agent he would pay him $1,000 to commit the arson, of which $300 would be paid in advance. Law enforcement arrested Kacho on March 15, 2013. He pleaded guilty in July 2013, to one count of solicitation to commit a crime of violence (arson), affecting interstate commerce.
Kacho has been in custody since March 2013 arrest, and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI. Assistant U.S. Attorney Craig D. Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Leader of Sovereign Citizen Group Convicted of Causing the Impersonation of Diplomats and Producing False IDsRead the Press Release
ALEXANDRIA, Va. – James T. McBride, 60, of Columbus, Ohio, the self-proclaimed leader of a group known as “Divine Province,” was convicted today by a federal jury of conspiracy, causing the impersonation of a diplomat and producing false identification documents.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the verdict was accepted by U.S. District Judge Anthony J. Trenga.McBride was indicted on May 14, 2014, by a federal grand jury of one count of conspiracy, one count of causing the impersonation of a diplomat and four counts of producing false identification documents. According to the evidence at trial, McBride was the leader of a sovereign citizen group called “Divine Province,” whose members claimed the U.S. government was a “municipal corporation” that did not have authority over them. McBride produced and distributed false diplomatic identification cards to his group’s members, and he encouraged them to make claims of diplomatic immunity to avoid arrest, debts or taxes. None of the group’s members were in fact accredited diplomats.
McBride started selling the identification cards in September 2012 at a seminar he organized in Herndon, Virginia. Afterwards, he started selling the IDs from a website and shipping them around the country.McBride sold the IDs in pairs, one that identified the holder as a “Universal Post Office Diplomat” and another that purported to be an “International Diplomatic Driver Permit,” for approximately $200. The defendant also encouraged his members to send copies of the IDs to governmental agencies to notify them of a member’s “status” as a diplomat. The defendant claimed that his authority to issue the IDs came from the Vatican. The defendant also gave a televised interview on ABC News prior to the filing of charges in the case, in which he reiterated such claims. During the course of the charged conduct, the defendant’s organization earned close to $500,000.
McBride faces a maximum punishment of five years in prison for the conspiracy count, ten years for the count of causing the impersonation of a diplomat, and five years for each count of producing a false identification document.
This case was investigated by Homeland Security Investigations, with significant assistance from the South Carolina Law Enforcement Division. Special Assistant U.S. Attorney William E. Johnston and Assistant U.S. Attorney Kosta S. Stojilkovic are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-175.
Lafayette Man Indicted for Bomb Threat, Bank RobberyRead the Press Release
LAFAYETTE, La. –A federal grand jury indicted a Lafayette man for making a bomb threat and attempting to rob a bank, U.S. Attorney Stephanie A. Finley announced today.
Devin Haywood, 30, of Lafayette, was charged by a federal grand jury with one count of using a facility in interstate commerce to willfully make a threat or maliciously convey false information and one count of attempted bank robbery. According to the indictment, Haywood used a cell phone to make a bomb threat on July 16, 2014, in Lafayette and also attempted to rob a bank on Moss Street in Lafayette the same day.
If convicted, the defendant faces 10 years in prison and three years of supervised release for the bomb threat charge. He faces 20 years in prison and five years of supervised release for the attempted bank robbery charge. Both charges carry a fine of up to $250,000.The FBI, ATF, U.S. Marshals Service, Louisiana State Police, Lafayette Police Department, Lafayette Parish Sheriff’s Office, and the University of Louisiana at Lafayette Police Department investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Kansas Woman Pleads Guilty, Admits to Stealing $731,000 from Two EmployersRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bucyrus, Kan., woman pleaded guilty in federal court today to a bank fraud scheme in which she embezzled more than $543,000 from one employer, and admitted that she also stole more than $188,000 from a subsequent employer.
Susan Elise Prophet, 45, of Bucyrus, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of bank fraud and one count of aggravated identity theft.
By pleading guilty today, Prophet admitted that she embezzled $543,034 from Dorfman Plumbing Supply Company in Kansas City, Mo., by forging her employer’s signature on 104 checks, 99 of which were written to herself. After her theft was discovered and she was fired by Dorfman, Prophet was hired as a bookkeeper at a Paoloa, Kan., nursing center. Prophet admitted that she also embezzled at least $188,460 from this employer.
Prophet worked as a bookkeeper for Dorfman from December 2012 until she was fired eight months later in August 2013. (The company has since been sold to Ferguson Enterprises, Inc., a national distributor of residential and commercial plumbing supplies.) Prophet was known to her employer as “Susan Morriss.” She touted that she was the wife of a federal law enforcement agent, which was true at or close to the time she was hired. In a separate and unrelated case, former ICE-Homeland Security Investigations agent Jeffrey Morriss pleaded guilty to making false statements to FBI agents in regard to a more than $800,000 mortgage fraud scheme.
Prophet used the funds for her personal enrichment, purchasing trucks, a car, a motorcycle, travel, furniture, electronics, a gym membership, tattoos and other items. Prophet spent at least $130,424 on vehicle-related purchases, including a 2013 Dodge Ram 1500 Sport; a 2013 Harley Davidson FLTRX Road Glide motorcycle; a 2008 Ford Focus; a 2005 Chevrolet Tahoe; and a 2003 Chevrolet Trailblazer. Prophet withdrew at least $86,000 from her accounts and wrote nearly $21,000 in checks to herself or to cash. She used the embezzled funds to pay her rent and pay down her debts, and spent at least $15,096 at restaurants, $12,743 on travel, $6,703 on electronics, and $9,221 at Nebraska Furniture Mart.
Prophet took steps to conceal her scheme, such as altering the company’s financial records to show that vendors had been paid when, in fact, they had not been paid. When vendors attempted to collect, Prophet answered the calls and hid the claims from her employer. As vendors began to freeze the company’s accounts, Prophet created new checks and forged her employer’s name on the checks to pay the most critical invoices.
Prophet had worked as a bookkeeper for multiple companies beginning in Tennessee at least in 2002, and she sustained a felony conviction or convictions related to those positions. Upon her release from prison, Prophet applied to transfer her supervision from Tennessee to Kansas in 2009. Her release conditions prohibited her from any employment where she would have access to cash, checks or any account information of her employer. She was required to keep her parole officer continuously informed of her residence and employment, and to notify her employer of her felony convictions.
Prophet found a job posting online and was hired by Dorfman in November 2012 for $13.50 per hour. She did not disclose her criminal history or that she was prohibited by her supervision conditions from working as a bookkeeper. She did not inform her parole officer of her new employment. Prophet began embezzling from the company the very next month.
On Aug. 7, 2013, company owner Charles Dorfman met with Scott Rayburn, a representative of Ferguson Enterprises, regarding the company’s sale to Ferguson. Prior to the meeting, Rayburn sent an e-mail to Dorfman containing a list of all the outstanding invoices that needed to be satisfied before the completion of the sale. During the negotiation process, Rayburn thanked Dorfman for paying the outstanding invoices to Ferguson via an electronic funds transfer of $10,000. Dorfman had neither ordered nor authorized the transfer. The electronic authorization form had been filled out by Prophet (who signed Dorfman’s name). At the conclusion of the meeting, Dorfman contacted bank officials regarding the known forgeries committed by Prophet and she was fired.
A few months after being fired, on or about Oct. 10, 2013, Prophet obtained another bookkeeping job at North Point Skilled Nursing in Paola, Kan. She did not disclose her criminal history or that she was prohibited by her supervision conditions from working as a bookkeeper. She did not inform her parole officer of her new employment. Following her Feb. 28, 2014, arrest on the federal indictment, North Point discovered that Prophet had been embezzling from North Point as well, also by writing numerous checks to herself and altering the ledgers to conceal where the money actually went. The loss from this embezzlement was at least $188,460.
Under federal statutes, Prophet is subject to a sentence of up to 30 years in federal prison without parole for bank fraud, plus a consecutive sentence of two years in federal prison without parole for aggravated identity theft. Prophet must pay $732,495 in restitution to her former employers. Prophet must forfeit to the government the 2013 Dodge Ram 1500 Sport, 2013 Harley Davidson FLTRX Road Glide motorcycle, 2008 Ford Focus, 2005 Chevrolet Tahoe and 2003 Chevrolet Trailblazer as well as a money judgment of $543,034, all of which represents the proceeds obtained from the fraud scheme. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI and the Kansas City, Mo., Police Department.Joint Statement of United States Attorney Richard G. Callahan, Acting Assistant Attorney General for the Civil Rights Division Molly J. Moran and FBI SAC William P. WoodsRead the Press Release
At the request of local authorities and at the direction of Attorney General Eric H. Holder, Jr., our respective offices have opened a civil rights investigation into the shooting death of Michael Brown that occurred in Ferguson, Missouri, this past Saturday. In conducting the independent federal investigation into whether there were federal civil rights violations, we will be working as much as possible with the local authorities who are determining whether there were any state law violations. While the investigation will be handled as expeditiously as possible, our pledge to the community is that it will be a thorough and complete investigation, following the facts wherever they may take us.
We urge witnesses or individuals with any information related to the incident who have not yet come forward to contact the local FBI office. The FBI office in St. Louis can be reached at (314) 589-2500.
Jefferson County Man Guilty of Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 42-year-old Nederland, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Antonio Govea Figueroa pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, from June 2008 to November 2013, Figueroa, the owner and operator of Tony’s Kustom & Collision in Port Arthur, Texas, electronically submitted claims to Farmers Insurance for collision work. Farmers became suspicious of the invoices submitted by Figueroa. The inspection of 44 claims revealed Figueroa claimed repairs that were not actually done and claimed to use new parts when salvaged or inferior parts were actually used without the consent or knowledge of the insured.
Figueroa faces up to 20 years in federal prison and restitution of $118,013.34 at sentencing. A sentencing date has not been set.
This case is being investigated by Department of Homeland Security – Homeland Security Investigations, Texas Department of Public Safety, and Farmers Insurance Significant Investigations Unit and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Jackson, Mississippi, Man Convicted of the Attempted Online Extortion of the University of Louisville Athletic AssociationRead the Press Release
LOUISVILLE, Ky. – A Jackson, Mississippi, man was convicted in U.S. District Court today, following a day-and-a-half jury trial, on a single count of extortion, by means of a threatening interstate communication, announced David J. Hale, United States Attorney for the Western District of Kentucky.
The jury deliberated less than two hours before convicting Thomas E. Ray, age 36, of Jackson, Mississippi.
Ray was indicted by a federal grand jury meeting in Louisville, Kentucky, on October 16, 2013. The indictment was unsealed on October 24, 2013, following Ray’s arrest in Mississippi, by the U.S. Marshal Service.
According to evidence presented at trial, Ray used the alias “Melinda White” when he knowingly sent an email communication from his home in Jackson, to the Commonwealth of Kentucky, on April 23, 2013. Ray’s email was sent to two University of Louisville employees with a threat to injure the reputation of the University of Louisville Athletic Association and a demand for $3.5 million.
Ray faces no more than two years in prison, a maximum fine of $250,000 and a one year period of supervised release. Ray was taken in to custody by the U.S. Marshal Service in Louisville and is scheduled for sentencing before Chief Judge Joseph H. McKinley Jr. on November 3, 2014, in Louisville.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI), Louisville Metro Police Department, and Office of the Kentucky Attorney General.
Hickory Man Handed Down 30 Month Prison Sentence in Connection with Multi-Million Dollar Mortgage and Consumer Fraud SchemeRead the Press Release
STATESVILLE, N.C. B Roger Dean Bailey, Jr., 41, or Hickory, N.C. was sentenced to 30 months in prison today for his role in a mortgage and consumer fraud conspiracy involving manufactured and modular homes, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Richard L. Voorhees also ordered Bailey to serve two years under court supervision and to pay restitution, the amount of which will be determined at a later date. Bailey pleaded guilty in October 2011 to conspiracy and fraud charges related to his and his conspirators’ lies to buyers of manufactured and modular homes, to lenders who financed the home sales, and to the U.S. Department of Housing and Urban Development, which guaranteed the loans.
U.S. Attorney Tompkins is joined in making today’s announcement by Nadine Gurley, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the Department of Housing and Urban Development (HUD-OIG); Karen Citizen-Wilcox, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG); Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS); North Carolina Attorney General Roy Cooper; and Ray Grace, North Carolina Commissioner of Banks (NCCOB).
According to filed documents and statements made in court today, Bailey was a former sales manager with Homes America in Hudson, N.C. Homes America was a sales branch of manufactured housing retailer Phoenix Housing Group (PHG), previously headquartered in Greensboro, N.C. Court records indicate that from 2004 to 2008 Bailey was involved with the origination of up to 154 fraudulent HUD/FHA-insured mortgage loans worth over $16 million. As a sales manager, court records show that Bailey convinced customers to purchase manufactured and modular homes which they could not afford by misrepresenting the financing terms, including that Homes America had a rent-to-own program, when it did not. Court records indicate that Bailey was able to secure mortgage loans for unqualified consumers by providing lenders with documents that contained fraudulent customer information, including false income, false assets, and false credit. According to court records, in some instances Bailey also obtained inflated appraisals, misrepresented the source of down payment funds, and coerced consumers to sign closing documents. On some occasions, Bailey also collected down payment money for which borrowers received no credit.
In imposing the 30 month sentence on Bailey, Judge Voorhees emphasized that Bailey, who was the first defendant to plead guilty in the case, provided “exceptional cooperation.” However, in describing the customers defrauded during the scheme—many of whom were not familiar with the home buying process – Judge Voorhees cited that the fraud “visited losses on impecunious people.”
According to court records, of the 154 loans issued based on the false information provided by Bailey, 74 of those loans (totaling more than $9 million) were originated by a single loan officer, Marina McCuen. McCuen worked in the Asheville office of W.R. Starkey Mortgage (WRSM), a mortgage loan company approved to originate loans insured by the FHA or guaranteed by USDA. McCuen, 50, was sentenced on August 4, 2014 to 50 months in prison and to one year of supervised release for her role in the conspiracy.
In addition to Bailey and McCuen, five other conspirators in this case have pleaded guilty and are awaiting sentencing:
• Dennis Wayne Parris, 56, of Pinehurst, N.C. was a Senior Vice President at PHG. He pleaded guilty in April 2014 to conspiracy to make false statements to a federal agency, submit false statements to HUD, and destroy records in a federal investigation.
• Fabian Sparrow, 36, of Burlington, N.C. was a sales manager at PHG’s sales center in Burlington. He pleaded guilty in June 2014 to conspiracy to make false statements to a federal agency and submit false statements to HUD.
• Andrew B. McKeown, 40, of Asheboro, N.C. was a sales manager at PHG’s sales center in Asheboro. He pleaded guilty in January 2014 to concealing the conspiracy to defraud the government and consumers.
• Isaac “Ike” A. Vinson, IV, 47, of Pawley’s Island, S.C. pleaded guilty in November 2013 to conspiracy to make false statements to a federal agency, submit false statements to HUD, and destroy records in a federal investigation. Vinson was a WRSM branch manager and loan officer in Myrtle Beach, S.C. He also supervised McCuen.
• Joseph Klakulak, 37, of Charlotte, was a loan officer for WRSM’s Charlotte office. He pleaded guilty in August 2013 to conspiracy to make false statements to a federal agency and submit false statements to HUD.Court records show that Parris, Sparrow, McKeown, and Bailey sold over 1,100 homes to North Carolina consumers from PHG stores in Burlington, Asheboro, Granite Falls, and elsewhere, financed with more than $158 million in government-insured loans. The fraudulent loans resulted in hundreds of mortgage insurance claims totaling more than $24 million and net losses to the United States exceeding $16 million at the time that charges were filed. In January 2011, PHG ceased business operations as part of a settlement with the Consumer Protection Division of the North Carolina Attorney General’s office.
The prosecution for the case was handled by Assistant United States Attorneys Michael Savage and Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte. The investigation is being handled by HUD-OIG and USDA-OIG, investigators with North Carolina’s State Bureau of Investigation, the NCCOB, the Consumer Fraud Divisions of the North Carolina Attorney General’s Office, and USPIS. In making today’s announcement, U.S. Attorney Tompkins noted that substantial assistance in financial analysis was provided by the United States Marshals Service. Tompkins also thanked the U.S. Department of State for their assistance in the apprehension of Sparrow, who fled the United States for Doha, Qatar.
Government Files Motion to Quash State Court Subpoena in Commonwealth of Pennsylvania V. Robert J. MellowRead the Press Release
The Unites States Attorney's Office for the Middle District of Pennsylvania announced today that it filed a Motion and Brief in Support of Motion to Quash State Court Subpoena in Commonwealth of Pennsylvania v. Robert J. Mellow.
Goose Creek Man Sentenced to 30 Years in Prison for Manufacturing Methamphetamine in Apartment Where Fire Killed Three ResidentsRead the Press Release
Contact Person: Peter Phillips (843) 727-4381
Columbia, South Carolina -----United States Attorney Bill Nettles stated today thatShonni Abernathy, age 41, of Berkeley County, South Carolina, was sentenced by the Honorable Richard M. Gergel to 30 years imprisonment for (1) conspiring to manufacture methamphetamine; and (2) manufacturing methamphetamine where children reside. Abernathy had previously pled guilty on April 29, 2013.
The investigation began on May 31, 2012, after a suspicious fire occurred at the Pine Harbour Apartments in Goose Creek, South Carolina, which resulted in three deaths and the displacement of numerous residents. The investigation revealed a used, one-pot methamphetamine lab in the apartment where the fire began, as well as other chemicals and tools used for the manufacture of methamphetamine. The investigation further revealed that Shonni Abernathy and his codefendant, Jerald McCabe, manufactured methamphetamine in that apartment on numerous, previous occasions.
Mr. Nettles stated that the case was investigated by the Berkeley County Sheriff’s Office, State Law Enforcement Division (SLED), the Drug Enforcement Agency (DEA), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Peter T. Phillips of the Charleston Office handled the prosecution.Former Wayne County School System Employee Charged with Federal Program Fraud Totaling $135,000Read the Press Release
Nashville, Tenn. – August 13, 2014 – Kayla Luna, 47, of Waynesboro, Tennessee, was charged by a criminal information filed yesterday, with federal program fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the information, between July 2008 and continuing until January 2013, Luna, who was an agent of the Wayne County School System, embezzled, stole, and obtained by fraud, goods that belonged to the Wayne County School System. Specifically, Luna is charged with converting goods and gift cards purchased at Wal-Mart stores, totaling approximately $135,000, to the use of someone other than the school system.
U.S. Attorney David Rivera stated, “This case is yet another example of cooperation between federal and state law enforcement agencies to pursue fraud allegations and prosecute an individual responsible for helping herself to funding that was intended for Wayne County schools and students.”
“This case illustrates how state and federal law enforcement agencies can utilize their resources to bring to justice the most egregious criminal activity, including corrupt practices undertaken by those in a position of public trust” said A. Todd McCall, Special Agent in Charge of the Federal Bureau of Investigation’s Memphis Division.
"This case exemplifies the hard work exhibited by the Internal Revenue Service- Criminal Investigation and our law enforcement partners as we leveraged our cooperative resources to dismantle public corruption in Wayne County", said Christopher A. Henry, Special Agent in Charge for IRS- Criminal Investigation's Nashville Field Office. "The victims in this case are the young minds that one day will be the future leaders of this great country and their needs and educational opportunities will not be dashed by corrupt public officials. IRS Special Agents will vigorously pursue all aspects of criminal financial fraud."
If convicted, Luna faces a maximum penalty of 10 years in prison, a $250,000 fine, as well as forfeiture of $135,000.
This investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Tennessee Bureau of Investigation, and the State of Tennessee-Office of the Comptroller of the Treasury. Assistant United States Attorney Scarlett S. Nokes is representing the United States.
Charges brought by an information are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.Former WVDOH Supervisor Convicted of Lying to Federal AgentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A former supervisor with the state Division of Highways admitted today that he lied to a Federal agent.
United States Attorney William J. Ihlenfeld, II, announced that EDWARD MATTHEW TUTTLE, 38 years old, of Buckhannon, West Virginia, entered a guilty plea this morning to the felony offense of "Making a False Statement to a Federal Agent." TUTTLE admitted that he lied to an F.B.I. agent who questioned him as part of an ongoing Federal investigation into the Equipment Division of the West Virginia Division of Highways. TUTTLE formerly served as the Highway Administrator for the WVDOH in Upshur County, and as a supervisor with the Equipment Division. U.S. Magistrate Judge James E. Seibert accepted the plea today in Wheeling.
Testimony offered at the plea hearing revealed that complaints made by citizens to a public corruption hotline were very beneficial to investigators and led them to obtain a Federal search warrant for the WVDOH’s Equipment Division.
TUTTLE now faces up to five years in prison and a fine of up to $250,000. Under the
Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the Defendant’s prior criminal history, if any.This case is being prosecuted by U.S. Attorney Ihlenfeld and Assistant United States Attorney John C. Parr and was investigated by the U.S. Attorney’s Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation, the West Virginia State Police, and the State Commission on Special Investigations are leading the inquiry.
Citizens who wish to report public corruption in their community are encouraged to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS or to send an email to [email protected].
Former Richmond County Deputy Sentenced in Identity Theft SchemeRead the Press Release
AUGUSTA, GA: Sean Lydell Street, 39, a former Richmond County, Georgia Deputy Sheriff, was sentenced yesterday by U. S. District Court Judge J. Randal Hall to 24 months in prison for stealing personal identification information to be used as part of a fraudulent tax refund scheme.
According to the evidence presented during the guilty plea and sentencing hearings, Street worked for the Richmond County Sheriff’s Office from 2007 through 2012. During the last part of 2011 and the first part of 2012, Street used the personal identification information of over 100 individuals, which he obtained through his work as a law enforcement officer, to create a list containing the name, birthdate, and social security number of each person. Street then passed this list to an acquaintance knowing that the information would be used to file fraudulent tax returns with the United States Internal Revenue Service. In exchange, Street hoped to gain at least $1,000.00 per stolen identity. In total, individuals used the information from Street’s list to file 76 bogus tax returns which claimed $414,826.00 in false refunds. The IRS paid a total of $76,424.00 in refunds prior to the discovery of the fraud.
United States Attorney Edward J. Tarver said, “Aggravated identity theft and stolen identity tax refund fraud are serious crimes that have serious consequences. Mr. Street is now walking a different beat on the way to federal prison.”
“Mr. Street exploited his position as a law enforcement officer for his own personal financial gain which came at the expense of the community he was entrusted to serve,” stated Special Agent in Charge, IRS Criminal Investigation Veronica F. Hyman-Pillot. “This sentence is a message to others that there are consequences to stealing and using other individual's personal identifying information.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “Identity theft in furtherance of fraudulent tax returns is a significant and growing crime problem that victimizes not only those individuals but also the taxpayer. The FBI will continue to do its part in combating this trend and ensuring that those individuals engaged in such criminal activities are held accountable for their actions.”
IRS-CI Special Agent Jeffrey Pippin Hale, FBI Special Agent Paul Kubala, and Deputies from the Richmond County Sheriff’s Office conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Redflex CEO, Liaison, and Chicago Official Indicted for Alleged Corruption in City’s Red Light Camera ContractsRead the Press Release
CHICAGO — A former chief executive officer of Chicago’s first red light camera vendor, Redflex Traffic Systems, Inc., and the company’s customer liaison with the city, were indicted today on federal corruption charges together with a retired city official who managed the red light camera program for nearly a decade, after he alone was charged initially in May.
A federal grand jury returned a 23-count indictment alleging that Redflex officials, including KAREN FINLEY, its former CEO, provided the retired city official, JOHN BILLS, with approximately $570,000 cash and other personal benefits in exchange for Bills’ providing inside information and assisting Redflex in obtaining, keeping, and expanding its Chicago contracts that grew to $124 million. Finley and other officials of Phoenix-based Redflex arranged to funnel the cash and benefits to Bills through his friend, MARTIN O’MALLEY, by hiring O’Malley as an independent contractor who passed much of his $2 million compensation on to Bills, the indictment alleges.
Finley, 54, of Cave Creek, Ariz., who was Redflex’s chief executive from late 2005 through February 2013 and its vice president of operations from 2001 until she became CEO, was charged with nine counts of mail fraud, three counts of wire fraud, three counts of federal program bribery, and one count of conspiracy to commit federal program bribery. O’Malley, 73, of south suburban Worth, who was an independent contractor for Redflex between 2003 and 2012, was charged with one count of conspiracy to commit federal program bribery.
Bills, 53, of Chicago, who was arrested in May on a criminal complaint and released on his own recognizance, was indicted on nine counts of mail fraud, three counts of wire fraud, three counts of federal program bribery, three counts of filing a false federal income tax return, and one count each of extortion and conspiracy to commit federal program bribery. A city employee for 32 years, Bills served as a member of the red light camera contract evaluation committee and retired as managing deputy commissioner of the city’s transportation department on June 30, 2011.
All three will be arraigned on a date yet to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture from all three defendants of approximately $613,400 as well as the proceeds from the sale of a condominium in Gilbert, Ariz.
Between late 2002 and late 2012, Bills and Finley allegedly schemed to defraud the city of money and Bills’ honest services by providing Bills with cash, checks, and other personal benefits directly and indirectly, including meals, hotel stays, rental cars, and golf outings. In May 2008, O’Malley purchased the condominium for Bills, which Bills visited nearly two dozen times with friends and family until the fall of 2012.
“When public officials peddle influence for profit, the consequences are severe, and when corporate executives enable that corruption, the same rule applies. We will attack alleged public corruption from every angle,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
“Rooting out public corruption remains one of the FBI's highest priorities,” said Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. “Today's indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violated the public’s trust,” he added.
“IRS Criminal Investigation ensures that all Americans, including public officials, are held to the same standard and that everyone pays their fair share of taxes,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“The alleged confluence of corrupt local officials and corrupt corporate officers demands a counterweight of local and federal agencies working to redeem the frayed confidence of the public,” said Joseph Ferguson Inspector General for the City of Chicago. “The Office of Inspector General is therefore grateful for the continuing leadership, dedication and collaboration of our federal partners in this matter.”
The investigation is continuing, the officials said.
According to the indictment and the complaint affidavit against Bills, in October 2003, the city awarded a contract to Redflex for the installation, maintenance and operation of the city’s first Digital Automated Red Light Enforcement Program (DARLEP), which used cameras to automatically record and ticket drivers who ran red lights. Between 2004 and 2008, the city paid Redflex approximately $25 million under this contract, and Redflex installed and maintained more than 100 red light cameras in Chicago intersections, and assisted in reviewing and processing violations. Bills, then assistant transportation commissioner, was a voting member of the city’s request for proposal (RFP) evaluation committee that recommended awarding the contract to Redflex after a one-month trial run of competing systems by Redflex and another finalist. In February 2008, the city awarded a new, non-competitive contract to Redflex to operate and maintain the previously installed camera systems, and paid Redflex approximately $33 million under that contract.
Also in February 2008, following the competitive RFP process, the city awarded a new DARLEP contract to Redflex that was similar to the first. Bills was an advisory member of this RFP evaluation committee. The city paid Redflex approximately $66 million under this contract, resulting in the installation of nearly 250 additional red light cameras.
By 2010, Chicago had the largest red light camera program in the United States, representing approximately 20 percent of the total camera systems that Redflex, a subsidiary of Australian-based Redflex Holdings Ltd., operated nationwide.
According to the indictment, Individual A, Redflex’s former vice president of sales and marketing, made a presentation to Bills regarding Redflex’s red light cameras in late 2002. Shortly after a Jan. 3, 2003, pre-bid meeting that Individual A attended with other vendors, Bills asked Individual A to get him a hotel room in Los Angeles. Individual A paid for the room and sought and received reimbursement from Redflex.
In February 2003, after Redflex and a competitor were selected for a pilot phase, Finley, Individual A, and others from Redflex met Bills at the John Hancock Center and Bills provided information in an effort to give Redflex an advantage over its competitor, the charges allege. Before the pilot phase, Bills recommended that Redflex hire Company A as a subcontractor. In May 2003, before the city contract was awarded, Bills, Individual A and, at times, Individual B, who was then Redflex’s CEO, allegedly strategized to ensure a favorable result for Redflex. On May 27, 2003, the evaluation committee and city transportation commissioner recommended that Redflex be awarded the DARLEP contract, effective in October 2003.
At a celebratory dinner in June 2003 in Los Angeles, Bills allegedly told Individual A words to the effect of, “It’s time to make good,” which Individual A understood to mean that Bills wanted and expected to be paid for helping Redflex win and maintain the Chicago contract. Bills allegedly discussed how much money he wanted based on the size of the contract, and suggested to Individual A alternative ways to funnel benefits to him, including paying him through the newly created Chicago customer liaison position.
Individual A relayed Bills’ demand to Finley and Individual B. In May 2003, Finley allegedly directed placing an advertisement in a Chicago newspaper for an account manager for Redflex’s Chicago contract, and Bills allegedly told O’Malley to look for and respond to the ad. O’Malley interviewed with Finley and Individual B and was hired in the summer of 2003. Bills allegedly indicated to O’Malley that he was working with Redflex on O’Malley’s employment contract and that O’Malley would give him a portion of the commissions that O’Malley received.
The indictment alleges that from 2003 through November 2012, O’Malley and Bills used several different methods, at Bills’ direction, to transfer funds to Bills, including: from 2004 through 2012, O’Malley withdrew more than $600,000 in cash and O’Malley gave Bills approximately $570,000 in cash; from 2008 to 2010, O’Malley wrote Bills checks totaling approximately $17,900, which Bills used to pay personal debts and expenses; and from 2007 to 2011, O’Malley wrote checks totaling approximately $5,500 to a political organization.
Also at Bills’ request, the indictment alleges that Redflex agents, including Individual A and O’Malley, paid for at least $20,000 worth of personal expenses for Bills, including hotels rooms, meals, golf games, and computers, with the approval of Finley and Individual B, and expensed these purchases through Redflex from 2003 through 2011. Neither Finley nor Bills reported the flow of benefits on financial disclosure or economic interest forms they each submitted in connection with the contracts and Bill’s employment, the charges allege.
Before Bills retired, he allegedly made it known to Individual A and other Redflex employees that he wanted a job with Redflex. Instead, Finley, Individual A and others arranged for Bills to get a job with Nonprofit Corporation A, and Redflex increased its monthly funding to Nonprofit Corporation A to help pay for Bills’ salary. That job lasted through the early spring of 2012.
The tax charges against Bills allege that he failed to report the income he received from O’Malley on his federal income tax returns for 2008, 2009 and 2011.
Each count of mail and wire fraud and extortion carries a maximum sentence of 20 years in prison; federal program bribery carries a maximum of 10 years in prison; and conspiracy carries a maximum of five years in prison, and each count carries a $250,000 maximum fine, while the mail and wire fraud counts also carry an alternate maximum fine of twice the gain, or twice the loss, whichever is greater. The tax counts against Bills each carry a maximum of three years in prison and a $250,000 fine. Defendants convicted of tax offenses must pay the costs of prosecution and remain civilly liable for any back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorneys Carrie Hamilton and Laurie Barsella.
Indictment
Former Bahrain Banker Pleads Guilty to $1.3 Million Federal Income Tax Fraud; Begins RepaymentRead the Press Release
CHICAGO — A former executive of a bank in Bahrain pleaded guilty today to federal income tax fraud, admitting that he filed three false tax returns and failed to file a fourth return, resulting in a tax loss to the United States of more than $1.3 million over four years. The defendant, AAMIR H. KHAN, pleaded guilty to one count of filing a false individual federal income tax return at his arraignment in U.S, District Court after he was charged in a single-count information filed late last month. He also agreed to pay the United States a $724,000 civil penalty for failing to report funds he held in foreign bank accounts.
Khan, 48, of Doha, Qatar, and formerly of Naperville, was the managing director – head of private equity for Unicorn Investment Bank BSC in Manama, Bahrain. A dual citizen of the United States and Pakistan, Khan voluntarily returned to the U.S. to resolve the tax charges. He was released on a $200,000 secured bond pending sentencing on Nov. 24 before U.S. District Judge Thomas M. Durkin.
Khan faces a maximum sentence of three years in prison and a $250,000 fine, and his plea agreement contemplates an advisory United States Sentencing Guidelines range of 30 to 37 months in prison. Khan made a partial restitution payment today of $300,000, and he remains liable for the total amount of back taxes and interest, as well as mandatory costs of prosecution.
As part of his guilty plea, Khan also agreed to pay the U.S. Treasury a civil penalty of $724,574, which represents 50 percent of the highest cumulative balance of five foreign bank accounts he maintained in the Middle East. The penalty resolves Khan’s civil liability for failing to file annual reports of Foreign Bank and Financial Accounts for the years 2007 through 2012.
In pleading guilty, Khan admitted that he caused a federal tax loss of just under $1.32 million by filing false tax returns for 2006-08 and failing to file a tax return for 2009. Khan did not provide accurate information to an accountant who prepared his returns. He reported that he had earned only slightly more than $100,000 on each of the three returns he filed, when, in fact, his wages and compensation totaled approximately $518,394 in 2006; $801,390 in 2007; and $2,029,331 in 2008. Khan’s gross income was approximately $1,238,604 in 2009 when he failed to file a tax return.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Federal tax law requires that U.S. taxpayers pay taxes on all income earned worldwide and to report certain foreign financial accounts.
The government is being represented by Assistant U.S. Attorney Patrick King.
Plea Agreement
Five More Individuals Charged in Cybercrime/Bank Fraud SchemeRead the Press Release
22 defendants have been charged to date; financial institutions report millions of dollars in losses
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that five individuals have been charged in connection with a scheme that uses stolen identification information to gain online access to personal bank accounts in order to steal from unwitting account holders. The charges represent the most recent efforts to neutralize this cybercrime scheme, which has already led to 17 convictions in three separate cases. Today’s cases bring the number of people charged in this scheme to 22 in six separate cases. As a result of this fraud, several financial institutions have reported millions of dollars in losses.
Those charged today include Wassim Jamal Abouassali, 22, of Plantation; Luis M. Jimenez, 25, of Miami; Jesus Venereo, 27, of Hialeah; Lazaro Perez, 27, of Hialeah; and Raul Riveron, 43, of Hialeah. Abouassali is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 15 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and seven counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20565-CR-Ungaro. Jimenez is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 22 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and 10 counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20564-CR-Cooke. In case number 14-20566-CR-Williams, Venereo, Perez, and Riveron are charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349; Venereo and Perez are charged in 15 substantive bank fraud counts, in violation of 18 U.S.C. §1344, while Riveron is charged in nine of those same counts; and Venereo and Perez are charged in eight counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, while Riveron is charged in four of those same counts. The indictments allege that Abouassali and Jimenez were tellers at different Wells Fargo bank branches.
All defendants charged have been taken into custody and are expected to make their initial appearances today at 2:00 p.m. before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison on the bank fraud and bank fraud conspiracy counts; and consecutive two-years in prison on the aggravated identity theft counts.
According to the charges, members of the scheme paid for personal identification information such as names, birthdates and social security numbers, along with bank account numbers, which they would use to make online intrusions into the accounts of victims. In some cases, members of the scheme created online access for accounts where it did not previously exist. Once they obtained access, conspirators changed account passwords and contact information in order to take control of the victims’ accounts. They then used that online access to obtain images of checks and signatures in order to create counterfeit and forged checks. As a final step, additional individuals would be recruited to cash the counterfeit checks at various bank branches. Several financial institutions have reported losses amounting to millions of dollars as a result of this fraud. Today’s arrests involve efforts to target accounts at Wells Fargo, while previous cases have involved intrusions into accounts at other financial institutions.
“Today’s charges involve an alleged modern-day bank robbery scheme that targeted banks using stolen personal identification information (PII) from various individuals to hijack personal checking accounts and steal funds. However, instead of using guns or masks to rob the banks, these charged individuals used the internet,” said U.S. Attorney Wifredo A. Ferrer. “Cybercrime is one of the greatest threats we face today. These cases should serve as a reminder to all consumers to exercise vigilance in protecting their PII and for all institutions to remain vigilant in safekeeping our PII.”
“These indictments are due in large part to the diligent investigative work of the FBI’s Miami Cyber Task Force,” said George L. Piro, Special Agent in Charge, FBI Miami. “More and more, criminals are using the Internet to steal millions of dollars from thousands of account holders without ever stepping inside a bank. The FBI and our partners continue to actively target these fraudsters who seek illicit gains from unwitting victims.”
Mr. Ferrer commended the investigative efforts of the FBI. These cases are being prosecuted by Assistant U.S. Attorney Karen Rochlin.
An indictment is only an accusation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Judge Finds Carlsbad Man Guilty on Theft of Government Money ChargesRead the Press Release
ALBUQUERQUE – Yesterday a federal judge has entered an order finding Steven Michael Allumbaugh, 63, of Carlsbad, N.M., guilty on theft of government money and property charges following a bench trial in Dec. 2013. The charges underlying the guilty verdict arose out of Allumbaugh’s illegal conduct in intentionally concealing his father’s death from the Social Security Administration and misusing his father’s Social Security benefits for his personal use for almost a year.
In announcing the verdict, U.S. Attorney Damon P. Martinez said, “The Social Security Administration relies on the honesty and good faith of Social Security recipients and their families to report information that impacts continuing entitlement. The guilty verdict in this case should assure the public that the U.S. Attorney’s Office is committed to protecting the integrity of federal entitlement programs.”
“Concealing a family member’s death to collect the deceased’s Social Security benefits for personal use is an intolerable offense,” said Ron Jesz, Assistant Special Agent-in-Charge of the Social Security Administration (SSA) Office of the Inspector General (OIG) Dallas Field Division. “Our office is committed to pursuing all forms of fraud, waste and abuse involving Social Security's programs, especially cases of deceased payee fraud.”
Allumbaugh was arrested in Aug. 2013, on a criminal complaint charging him with theft of government funds. He subsequently was indicted and charged with fraudulently obtaining Social Security payments. In Dec. 2013, Allumbaugh waived his right to a jury trial and agreed to proceed to trial before a federal judge on a two-count felony information charging him with theft of government money and property. The information charged Allumbaugh with stealing an aggregate of $19,537.20 in money belonging to the Social Security Administration between Jan. 3, 2012 and Dec. 3, 2012, while knowing that he was not entitled to that money.
The order finding Allumbaugh guilty found that the trial evidence established that Allumbaugh’s father was receiving Social Security retirement benefits in the monthly amount of $1400.00 when he died on Jan. 4, 2012. Allumbaugh concealed his father’s death and did not report it to the Social Security Administration. Because it was unaware of the father’s death, the Social Security Administration continued to pay the father’s monthly benefits through Jan. 2013 via direct deposit into his bank account. From Jan. 2012 through Dec. 2012, Allumbaugh’s mother drew 17 checks on the bank account and made them payable to Allumbaugh, and he accepted and cashed each of the checks. In addition, Allumbaugh withdrew money from the bank account at automatic teller machines.
The trial evidence included the testimony of a Special Agent with the Social Security Administration’s Office of Inspector General who interviewed Allumbaugh in April 2013. The Special Agent testified that during the interview, Allumbaugh admitted using his father’s Social Security benefits after his father died and apologized for doing so. The Agent also testified about a written statement prepared by Allumbaugh in which he admitted knowing that he was not entitled to his father’s Social Security benefits, that he continued to receive and use his father’s benefits after his father’s death, and that he failed to inform the Social Security Administration that his father had died because the “death was covered up.”
Allumbaugh has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Allumbaugh faces a statutory maximum sentence of ten years in prison when he is sentenced.
This case was investigated by the Dallas Field Office of the Office of Investigations of the Social Security Administration’s Office of Inspector General with assistance from the Roswell office of the FBI, and the Carlsbad Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Grand Jury Indicts Former Denton High School Teacher for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A federal grand jury in Fort Worth, Texas, returned an indictment late today charging a former teacher with two counts of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gregory Bogomol, 38, of Fort Worth, was arrested in May 2014 on a related federal criminal complaint and has been in custody since that time. He was employed by the Denton Independent School District as a teacher at Denton High School. He resigned from that position the week prior to his arrest.
According to the criminal complaint filed, the investigation began when U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was contacted by the parents of a 15-year-old male victim regarding an individual who solicited a nude photograph of the minor through a smartphone application.
Count one of the indictment alleges that on or about April 23, 2014, Bogomol used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. Count two of the indictment alleges the same occurred on April 20, 2014, with another minor.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for each count of production is not less than 15 years or more than 30 years in federal prison and a $250,000 fine.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Federal Grand Jury Indicts Eight in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — A federal grand jury returned an eight-count indictment late today charging eight defendants with felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the following defendants is charged with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine:
Natividad Gumaro Lopez-Guzman, 47, of Arizona
Flor Angelica Bustillos, 27, of Arizona
Gregorio Hernandez-Perez, a/k/a “Francisco Hernandez” and “Primo,” 27
Jesus Adrian Murillo-Angulo, a/k/a “Chavalon,” 20
Michael Alvarado Garcia, 41, of Lubbock, Texas
Haylie Nicole Moreno, 25, of Lubbock
Edward Adam Rodriguez, 22, of Lubbock
Brianna Lee Mendoza, 22, of Lubbock
In addition, Hernandez-Perez is charged with one substantive count of possession with intent to distribute 500 grams or more of methamphetamine and two substantive counts of distribution and possession with intent to distribute methamphetamine. Hernandez-Perez is also charged with two firearms offenses: one count of possession of firearms in furtherance of a drug trafficking crime and one count of being an illegal alien in possession of a firearm.
Garcia and Moreno are also each charged with one substantive count of possession with intent to distribute 500 grams or more of methamphetamine.
Rodriguez and Mendoza are also each charged with one count of possession with intent to distribute methamphetamine and one count of possession of a stolen firearm.
During the investigation, law enforcement seized approximately 11 pounds of methamphetamine and three firearms. All of the defendants, with the exception of Bustillos, are in custody.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each faces a maximum statutory penalty of life in federal prison and a $10 million fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Lubbock County Sheriff’s Office; Texas Department of Public Safety; Lubbock Police Department; Abilene Police Department; Department of Homeland Security, U.S. Border Patrol; Clovis, New Mexico Police Department; Curry County, New Mexico Sheriff’s Office; Albuquerque, New Mexico Police Department; New Mexico State Police, and the Maricopa County, Arizona HIDTA group are investigating.
Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Essex County, N.J., Pharmacist, 15 Others, Charged with Illegal Drug DistributionRead the Press Release
NEWARK, N.J. - A Belleville, New Jersey, pharmacist and 15 others were charged today for their roles in a scheme to fraudulently obtain and distribute oxycodone, U.S. Attorney Paul J. Fishman announced.
The defendants are each charged by criminal complaint with a single count of conspiring to possess and distribute oxycodone, a Schedule II controlled substance. Federal agents of the Drug Enforcement Administration Tactical Diversion Squad arrested 12 of the defendants today and two on Aug. 12, 2014. The defendants in custody are making their initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Two defendants remain at large.
According to the complaint:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the DEA discovered that members and suppliers of a drug trafficking organization (DTO) secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath, 42, of Elizabeth, New Jersey, as a senior member of the DTO, who obtained and filled prescriptions for controlled substances and then distributed them.
Vincent Cozzarelli, 77, of Belleville, is a pharmacist and owner of Rossmore Pharmacy in Belleville. The investigation revealed that Cozzarelli supplied Victoria Horvath and the DTO with oxycodone and other controlled substances even though he knew the prescriptions were fraudulently obtained and that the DTO would illegally distribute the controlled substances.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA under the direction of Special Agent in Charge Carl. J Kotowski for the investigation leading to the arrests. He also thanked the Belleville and Elizabeth police departments for their contribution to the case.The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the Organized Crime Drug Enforcement Task Force in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-292
DEFENDANT
AGE
RESIDENCE
42
Elizabeth, New Jersey
Alexis Horvath, a/k/a “Tima”
26
Elizabeth
Rickie Horvath, a/k/a “Yoggi”
53
Elizabeth
Steven Horvath, a/k/a “Chi-Chi,”
43
Elizabeth
Tony Marco
45
Elizabeth
Vincent Cozzarelli
77
Belleville
Daniel Horvath
25
Rutherford, New Jersey
Monica Horvath, a/k/a “Becky”
20
Rutherford
Johnny Horvath
45
Rutherford
Rhonda Musallam
38
Jersey City
Sabrina Vajda
31
Brooklyn, New York
Justin Farraj, a/k/a “Blaze”
23
Newark
Robert O’Brien
57
Bloomfield, New Jersey
Brian Perez, a/k/a “B,”
21
Newark
Matthew Policarpio, a/k/a “Papi”
26
Newark
Luis Rivera, a/k/a “Tupac”
23
Bloomfield
denotes still at large
Horvath, Victoria et al. Complaint
El Paso Man Pleads Guilty to Federal Child Exploitation ChargeRead the Press Release
ALBUQUERQUE – Juan Carlos Hernandez, 44, of El Paso, Texas, pled guilty in federal court in Las Cruces, N.M., this morning to a felony information charging him with the online enticement of a minor to engage in illicit sexual activity. Under the terms of his plea agreement, Hernandez will be sentenced to ten years in federal prison to be followed by a term of supervised release to be determined by the court. Hernandez also will be required to register as a sex offender.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Doña Ana County Sheriff Todd Garrison, and Las Cruces Police Chief Jaime Montoya.
Hernandez was arrested on Feb. 28, 2014, by HSI on a criminal complaint alleging that he engaged in the online solicitation of a child under the age of 16 years between Sept. 2012 and June 2013. The criminal complaint also charged Hernandez with traveling from El Paso to Anthony, N.M., in June 2013, with the intention of having illicit sexual contact with a child under the age of 16 years.
According to court filings, Hernandez met the child victim on an Internet social networking website in Sept. 2012, and the two began communicating regularly by text messaging on cellphones in May 2013. Hernandez was arrested on state charges in the early hours of June 22, 2013, after deputies of the Doña Ana County Sheriff’s Office found him with the child victim at a park in Anthony, N.M.
In July 2013, HSI obtained federal search warrants for the cellphones seized from Hernandez and the child victim. Information obtained through the search warrants revealed that Hernandez engaged in sexually explicit communication with the child victim. It also revealed that Hernandez was aware that the child victim was under the age of 16 years and that prior to meeting the child victim, Hernandez told her that he was 17, 18 and 22 years old at various times.
In his plea agreement, Hernandez admitted intentionally enticing underage females online to engage in illegal sexual activity with him between Sept. 1, 2012 and June 22, 2013, by using a social account which he accessed with his cellphone and computer. Hernandez admitted telling minor females that he was 18-years-old. Hernandez specifically admitted engaging in multiple sexually explicit conversations with a 13-year-old girl.
Hernandez has been in custody since his arrest and remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Dover Teacher Charged in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Matthew B. Puterbaugh, 47, of Dover, Pennsylvania was indicted today by a federal grand jury in Harrisburg charging him with production of receiving, and possession of, child pornography.
If convicted, Puterbaugh faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum five years imprisonment on the receipt charge and a statutory maximum of 70 years imprisonment.
According to U.S. Attorney Peter Smith, Puterbaugh was a music teacher and band director at Dover Intermediate School in York County. He allegedly secretly recorded images of female students at the school that constitute child pornography. In February 2014, school officials reported a complaint to the Northern York County Regional Police Department. Police conducted searches and allegedly found thousands of images depicting minors engaged in sexually explicit conduct on computers in Puterbaugh=s home. Puterbaugh was suspended by the school district and charged by the York County District Attorney’s Office. Earlier this week, he was terminated from his position by the school district.
Puterbaugh appeared before Magistrate Judge Susan E. Schwab this afternoon. He was detained pending a detention hearing.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is part of a continuing investigation by the Federal Bureau of Investigation and the Northern York County Regional Police Department in cooperation with the York County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor. Anyone with information concerning the subject matter of the investigation should contact the FBI at 717-232-8686 and reference the Puterbaugh case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Department of Justice Reaches Comprehensive Settlement with Crestwood School District to Improve Educational Services for English Language LearnersRead the Press Release
The Civil Rights Division of the Department of Justice, working closely with the U.S. Attorney’s Office for the Eastern District of Michigan, reached a comprehensive settlement agreement with the Crestwood School District in Dearborn Heights, Michigan, to improve educational services for students who are English Language Learners (ELLs), establish a system for recruiting and hiring faculty and staff and ensure that individuals who complain about discrimination do not face unlawful retaliation.
With the district’s cooperation, the department conducted a thorough investigation under multiple provisions of the Equal Educational Opportunities Act of 1974 (EEOA) of the district’s policies and practices. Most of the ELL students in the district are native Arabic speakers. The department concluded that the district failed to provide adequate services and materials for ELL students, employed an insufficient number of qualified teachers and administrators and did not monitor and evaluate its ELL program effectively. In addition, the department found significant shortfalls in the district’s communications with Limited English proficient (LEP) parents. Lastly, the department responded to allegations of employment discrimination in the hiring of Arab-American and African-American teachers and claims that individuals who complain about discrimination were subject to retaliation in violation of the EEOA.
The agreement requires the district to implement programmatic changes at the start of the
2014-15 school year and will remain in place for at least four years. Under the agreement, the district will:
· Provide all ELL students, including students with disabilities, with appropriate English as a Second Language (ESL) and sheltered content instruction taught by teachers who are properly qualified and trained;
· Develop a kindergarten through-12th grade ESL curriculum and conduct a comprehensive inventory of the instructional materials to ensure that each school has appropriate resources available;
· Provide ELL students and LEP parents with meaningful access to important information, including discipline and special education materials and procedures;
· Monitor the academic progress of current and former ELL students, and implement protocols to collect and evaluate the data concerning the effectiveness of ELL programs;
· Work with the Department of Justice Community Relations Service to improve parental outreach and community engagement by establishing a community advisory panel and implementing training on cultural competency;
· With the assistance of a qualified consultant, draft a comprehensive recruitment and hiring policy and implement best practices for recruiting, hiring, and retaining a qualified and diverse faculty and staff; and
· Institute internal complaint processes, and designate and train employees to investigate and resolve allegations of employment discrimination and/or retaliation.
“All students, regardless of their proficiency in English, deserve the opportunity to succeed and thrive in school,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “This robust and multifaceted agreement will eliminate barriers that obstruct the path to success for English language learners in the Crestwood schools.”
“Schools have an obligation to provide equal educational opportunities for students from diverse cultural backgrounds,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We will continue to work cooperatively with the school district to monitor its compliance with the agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the
Justice Department’s Civil Rights Division. Additional information about the Civil Rights
Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
Crestwood Settlement Agreement
Conspirator in Hyattsville Brothel Robbery Sentenced to 10 Years in PrisonRead the Press Release
Conspirators Raped a Prostitute and Stabbed Another Victim to Death
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ramon Miguel Cerros-Cruz, age 24, of Hyattsville, Maryland today to 10 years in prison, after Cerros-Cruz pleaded guilty today to conspiring to rob a brothel located in a Hyattsville apartment.
The plea agreement and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on February 28, 2007, Cerros-Cruz and his co-conspirators went to a brothel located in an apartment in Hyattsville, Maryland, and demanded money. They tied up the brothel doorman, raped a prostitute who worked at the brothel and went through the brothel attempting to find money. The co-conspirators used knives to stab to death another victim who came to the apartment. Cerros-Cruz and his co-conspirators then fled the scene.Co-defendant Alexsi Lopez, age 26, also of Hyattsville, was indicted on July 15, 2013 on charges arising from the conspiracy and pleaded not guilty on July 26, 2013. Lopez is awaiting trial.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Prince George’s County Police Department for their work in the investigation, and thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner, who prosecuted the case.Colfax County Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Tommy Acevedo, 37, of Raton, N.M., pled guilty this morning to being a felon in possession of a firearm and ammunition. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief John Garcia of the Raton Police Department.
Acevedo was arrested on Dec. 17, 2013, on a federal indictment charging him with violating the federal firearms laws by unlawfully possessing a firearm and ammunition and unlawfully possessing an unregistered short-barreled shotgun in Colfax County, N.M., on June 19, 2013. At the time, Acevedo was prohibited from possessing firearms or ammunition because he previously had been convicted of two counts of forgery in the 8th Judicial District Court for the State of New Mexico and robbery in the 5th Judicial District Court for the State of New Mexico.
In entering his guilty plea, Acevedo admitted possessing a 20 gauge sawed-off shotgun without a serial number and eight rounds of ammunition on June 29, 2013, in Raton, N.M. Acevedo also admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Acevedo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. He faces a statutory maximum penalty of ten years in prison. Related state charges were dismissed in favor of federal prosecution.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raton Police Department, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Louis E. Valencia is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.Clarkson Construction Employee Charged with Embezzling at least $300,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of information technology for Clarkson Construction Company has been charged in federal court with a mail fraud scheme in which he embezzled more than $300,000 from the company.
Rodney J. Tatum, 43, of Kansas City, Mo., was charged with one count of mail fraud in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Aug. 12, 2014. Tatum was arrested at his residence this morning and an initial court appearance is scheduled for 3 p.m. today.
Clarkson Construction Company is one of the Midwest’s largest construction companies. Clarkson specializes in large-scale construction projects such as highways, interstates, bridges, and sport facilities. Clarkson employs approximately 130 full-time employees and approximately 650 hourly employees. Clarkson’s 2013 revenue was approximately $250 million.
Tatum has been employed by Clarkson since 1991 and has been Clarkson’s director of information technology since 2003. In this role, he oversees all of Clarkson’s IT activities at all of Clarkson’s business entities.
According to an affidavit filed in support of the federal criminal complaint, Tatum ordered more than $300,000 worth of expensive computer and communication equipment between Oct. 22, 2013, and July 31, 2014, and had it delivered to himself, either at Clarkson’s office or his personal residence, without authorization or a legitimate business purpose.
For example, Tatum allegedly ordered 545 solid state hard drives totaling $259,282 as well as 58 other computer-based items with a value of $14,768. Tatum was also responsible for purchasing Clarkson’s cellular telephones through Verizon. In 2014, the affidavit says, Tatum has used Clarkson’s corporate Verizon account to purchase 23 iPhone 5s Golds and two iPad Airs at a total value of $11,317. To date, none of this $306,540 worth of computer and communication equipment has been located in Clarkson’s inventory.
The affidavit alleges that Tatum has been reselling the equipment for personal profit. Bank records indicate that, during the time the computer equipment was being purchased, Tatum’s bank account was credited approximately 57 times in the amount of approximately $269,706 from PayPal. Tatum’s personal Facebook page reflects possible recent large spending, the affidavit says, including on customized motorcycles, a boat, and a large Raptor motor home.
According to the affidavit, Bill Clarkson, Jr., vice-president of Clarkson Construction, received an anonymous telephone call in early June 2014. The caller asserted that Tatum was embezzling from Clarkson Construction. Bill Clarkson looked into the allegation and soon learned that Tatum took his 2011 Suzuki Hayabusa motorcycle to Stedman Motor Sports, located in Moulton, Ala. Stedman worked on the motorcycle for six days, completing $6,567 worth of work, including customization. To pay for the services rendered, Tatum made multiple payments using his PayPal account. After picking up the motorcycle from Stedman, Tatum contacted PayPal and claimed the transactions were fraudulent. PayPal canceled the transactions and Stedman Motor Sports did not receive payment for its services. Stedman filed a police report with the Moulton, Ala., Police Department on April 15, 2014.
An invoice to Clarkson dated Sept. 25, 2013 in the amount of $4,200 listed Michael Stedman as being the provider of service and/or product to Clarkson. Stedman is the owner of Stedman Motor Sport and the address listed on this invoice is similar to the address of Stedman Motor Sport’s business address. On Tatum’s expense report, the affidavit says, he lists the $4,200 transaction as a “security update.” This invoice and expense report are believed to be related to Tatum’s transactions described in the Moulton, Ala., police report.
Tatum’s PayPal account was linked to his Clarkson purchasing card. The PayPal transactions with Stedman Motor Sports appeared on the April 2014 purchasing card statement. Based on this, Clarkson expanded the scope of its internal investigation and discovered the additional computer and communication equipment purchases.
According to the affidavit, Tatum visited Stedman approximately 10 times. Most recently, Stedman rebuilt his motorcycle three times. Stedman provided some of the labor in return for Tatum upgrading their computer network. During this period, the affidavit says, Tatum emailed Stedman 20 to 30 times per day. According to the affidavit, part of the upgrade was new security cameras that Tatum insisted they install. Subsequently, Stedman and his employees would often notice the cameras moving, not knowing why. They now believe Tatum was controlling the security cameras remotely and watching them at work. When Stedman had the issues with Tatum’s PayPal and credit card charges being charged back to the company, they searched for and collected the company’s records associated with Tatum. But many of the files were missing, the affidavit says, including emails from Tatum and the invoices accurately reflecting work done for Tatum. Stedman contracted a local IT company to have the network looked at and was told it had several “open doors” that were accessible through the Internet. Stedman now believes that Tatum accessed the network, exceeding his authority, and deleted files.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.Child Pornographer Sentenced to Five Years in Federal PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that BERNARD DELA ROSA TOVES, was sentenced on Monday, August 12, 2014, in the U.S. District Court of Guam by Chief Judge Frances Tydingco-Gatewood. TOVES received a sentence of five years incarceration, and ten years of supervised release.
Defendant TOVES pled guilty on October 9, 2012, to one count of Receipt of Child Pornography, in violation of Title 18 U.S.C. Section 2252A(a)(2). Defendant TOVES utilized the peer to peer (P2P) network to receive 49 movies which depict the sexual abuse of young children. Defendant TOVES was ordered to register with the Sex Offender Registry wherever he lives, works or attends school.
U.S. Attorney Limtiaco states, “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include the Pacific region. The U.S. Attorney’s Office is committed to aggressively prosecuting defendants who victimize and prey on children through any means, including through the use of the internet or computer."
The U.S. Attorney Limtiaco additionally reminds defendants who have committed sexual abuse of children, that under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.Cedar Rapids Man Charged with Committing Four Robberies at Two Different Cedar Rapids BanksRead the Press Release
Javon Dockery, age 29, of Cedar Rapids, Iowa, has been indicted on four counts of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. The charges are contained in Superseding Indictment filed on August 13, 2014, in United States District Court in Cedar Rapids.
Dockery and Bria Daudinot, age 21, also of Cedar Rapids, had previously been charged in a July 8, 2014 Indictment with one count of bank robbery. The Superseding Indictment brings the total number of robberies charged against Dockery to four. No new charges were brought against Daudinot.
The Superseding Indictment alleges that, on or about April 30, 2014, Dockery robbed the 16th Avenue branch of the US Bank in Cedar Rapids. The Superseding Indictment also alleges that, on both May 16 and May 29, 2014, Dockery robbed the Bever Avenue branch of the Guaranty Bank in Cedar Rapids. Finally, as was charged in the original Indictment, the Superseding Indictment alleges that, on June 26, 2014, Dockery and Daudinot robbed and aided and abetted the robbery of the 16th Avenue branch of the US Bank in Cedar Rapids, and Dockery possessed and brandished a firearm in furtherance of that robbery.
If convicted on all charges, Dockery faces a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,250,000 fine, a $500 special assessment, and up to 17 years on supervised release following any imprisonment. If convicted, Daudinot faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to 3 years on supervised release following any imprisonment.
Dockery and Daudinot are both being held without bond. Their next appearance for trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-68.
California Man Charged with Distribution of Painkillers in West VirginiaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A California man has been charged in Federal court in West Virginia as part of a painkiller distribution ring.
United States Attorney William J. Ihlenfeld, II announced that Mario O. GARCIA, age 41, of Van Nuys, California, was indicted last week and arrested today in Los Angeles on charges of “Conspiracy to Distribute Oxycodone” and “Aiding and Abetting the Distribution of Oxycodone.” It is alleged that GARCIA was responsible for causing thousands of oxycodone pills to be shipped to Marshall County, West Virginia for illegal distribution. Five other individuals have already been prosecuted and convicted in Federal court in Northern West Virginia as part of the same investigation.
If convicted, GARCIA faces up to twenty years in prison and a $1 million fine. The United States is also seeking money judgment in the amount of $82,500 against GARCIA, an amount that is alleged to be proceeds of the illegal activity. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.
The case will be prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and was investigated by the Marshall County Drug Task Force which includes officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration.An indictment is merely an accusation and the Defendant is presumed innocent unless and until proven guilty.
Broken Arrow Woman Sentenced for Bank Fraud and Tax EvasionRead the Press Release
TULSA, Okla. — A former manager of a credit union was sentenced on Tuesday to serve 27 months for each count of bank fraud and tax evasion, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma and Special Agent in Charge R. Damon Rowe of the Dallas field office for the Internal Revenue Service Criminal Investigation.
Eva Barroso, 54, of Broken Arrow, was sentenced to serve 27 months in federal prison by U.S. District Judge Chief Judge Gregory K Frizzell for one count each of bank fraud and tax evasion. At the time of the scheme, Barroso worked as a commercial services manager for Oklahoma Central Credit Union (OCCU) where her duties included marketing and servicing commercial loans. The Court entered a criminal forfeiture money judgment against the defendant in the amount of $238,177.42 representing proceeds obtained as a result of his bank fraud scheme. Barroso was also ordered to make restitution in the amount of $238,177.42 to OCCU and $57,360.50 to the Internal Revenue Service.
According to court documents, from July 2, 2009 to March 19, 2012, as part of the scheme, Barroso fabricated at least three false loans in the name of nominee entities and individuals without the knowledge and authorization of the purported borrower. Barroso admitted that she made various material false representations in obtaining these loans. She used the proceeds of these loans for her own personal benefit, including making ATM withdrawals at various casinos. To further the scheme, Barroso used some of the money to make payments on prior loans.
In addition, during the 2010 calendar year, Barroso willfully evaded a large part of income tax by failing to report to the Internal Revenue Service a total of $152,098.13 which was the money she fraudulently obtained from the scheme.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorneys Jeffrey Gallant and Catherine Depew on behalf of the United States.
Bowling Green, Kentucky, Man Sentenced to 10 Months in Prison for Growing Marijuana in Mammoth Cave National Park and Warren CountyRead the Press Release
BOWLING GREEN, Ky. - A Bowling Green, Kentucky, man was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley Jr., to 10 months in prison followed by two years of supervised release for conspiracy to manufacture marijuana inside Mammoth Cave National Park and inside a residence located in Warren County, Kentucky announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Williams, age 28, pleaded guilty to a four-count federal indictment in April 2014. Williams admitted that between May 4, 2011, and October 8, 2011, he and co-defendant Ryan Pitcock, of Bowling Green, knowingly and intentionally conspired to manufacture less than 50 Kilograms of marijuana, a schedule I controlled substance inside Mammoth Cave National Park. Williams also admitted to manufacturing marijuana and mushrooms containing psilocin and psilocybin within their residence in Warren County.
According to the plea agreement, search warrants obtained by Kentucky State Police for Williams’ and Pitcock’s apartment in Warren County revealed an extensive marijuana growing operation, processed marijuana for distribution, mushrooms containing psilocin and psilocybin being grown and packaged for distribution, and several stun guns.
Williams was charged by federal grand jury indictment on February 15, 2012, and was arrested by U.S. Marshals on November 4, 2013, in Florida.
Pitcock pleaded guilty to the charges on August 21, 2012 and was sentenced by Chief Judge McKinley to 12 months and one day in prison followed by a two year period of supervised release.
The case was prosecuted by Assistant United States Attorney Joshua Judd, and it was investigated by the National Park Service Rangers and the Kentucky State Police.
Baltimore Robber Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Edward Lee, age 43, of Baltimore, Maryland, today to 10 years in prison followed by three years of supervised release for conspiring to interfere with commerce by robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on December 1, 2012, Lee and co-defendants Michael Gwaltney and Devan Martin were seen, via the Baltimore Police City Watch camera system, speaking to a man who was entering his vehicle on Carrollton Avenue in Baltimore. The conversation appeared to turn argumentative. The man handed Gwaltney money, while Lee patted him down. Lee had a gun in his hand. Lee and Gwaltney escorted the victim across the street, while Martin rummaged through the victim's vehicle, and removed a briefcase from the trunk. As Lee and Gwaltney entered a dwelling in the block, the City Watch operator saw what appeared to be a gun in Gwaltney’s waistband.
The City Watch operator called for police to respond to the area. Police stopped Martin a half block from the victim’s car with the briefcase. Police located the victim leaving his wife’s hair salon business. The victim explained that two men had taken him into the business and demanded drugs and money. After seeing officers in the block, according to the victim, Gwaltney ordered the victim to leave the business and advise the officers that everything was fine. Eventually, both Lee and Gwaltney left the location and were arrested. The business was searched and officers seized a revolver and clothes worn by Gwaltney as he entered the location. Officers also seized a handgun in the yard next to the business.
Michael Gwaltney, age 39, and Devan Martin, age 41, both of Baltimore, previously pleaded guilty to their participation in the robbery and await sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
All 36 Charged Aryan Brotherhood of Texas Members and Associates Have Pleaded Guilty to Federal Racketeering Charges in Southern District of TexasRead the Press Release
The remaining two defendants of 36 accused in the Southern District of Texas of racketeering activities as part of their roles with the Aryan Brotherhood of Texas (ABT) have pleaded guilty, capping a six-year sweeping effort that has led to 73 convictions across five federal districts and the decimation of the gang’s leadership and violent members and associates. Those convicted were charged with involvement in a criminal organization that engaged in murders, kidnappings, brutal beatings, fire bombings and drug trafficking.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Robert W. Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Houston Field Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division and Special Agent in Charge David M. Marwell of the Homeland Security Investigations’ Dallas Field Division made the announcement.
“The Aryan Brotherhood of Texas launched its murderous and racist ideology within the Texas prisons, but unleashed a violent crime wave that jumped the prison walls and spread like a virus,” said Assistant Attorney General Caldwell. “Today we are announcing sweeping convictions that strike at the heart of the ABT gang: 73 convictions in five federal districts, including the five active generals who ran the organization with an iron fist. These convictions will ensure that these ABT gang members, from generals to soldiers, spend their years in federal prison paying for their crimes, not committing new ones.”
“Today, public safety is the winner,” said U.S. Attorney Magidson. “A significant blow to the ABT criminal activities culminated today with the convictions of all 36 as charged in relation to this significant racketeering activity. Only with a coordinated federal, state and local law enforcement effort, could these criminals’ extensive and heinous gang activities be brought before the bar of justice.”
Rusty Eugene Duke of Dallas, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. Tammy Melissa Wall of Otto, North Carolina, pleaded guilty to the same charge on Aug. 6, 2014. Duke and Wall are two of 36 defendants charged in the Southern District of Texas with conducting racketeering activity through the ABT criminal enterprise, among other charges. With Duke’s plea today, all 36 defendants have pleaded guilty.
The 36 convicted are part of a larger, six-year effort that has led to the conviction of 73 ABT members and associates in cases brought in the Southern District of Texas, Eastern District of Texas, Western District of Texas, Northern District of Texas and Western District of Oklahoma.
“Today marks a great day for the citizens of Texas,” said ATF Special Agent in Charge Elder. “As they go about their daily lives, they can rest easier knowing that law enforcement across the state is working tirelessly to keep them safe from violent criminals. Finally, this investigation is a great example of ATF’s Frontline Model, which seeks to go after the very worst offenders by maximizing all of our resources.”
“While these convictions have dealt a serious blow to the gang, there are always others waiting to take their place in the organization,” said FBI Special Agent in Charge Turner. “We have a message for them too: Violence and intimidation will not rule the streets of Houston. The FBI and our law enforcement partners will relentlessly pursue gang leaders and their associates at every level to ensure the safety of our communities.”
Court records and admissions by the defendants have exposed the ABT as a race-based, Texas state-wide organization operating inside and outside of state and federal prisons throughout Texas and the United States. Established in the early 1980s within the Texas prison system, the gang modeled itself after, and adopted many of the precepts and writings of, the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. The ABT was primarily concerned with the protection of white inmates and the promotion of whites as a superior race. The ABT used murder and the threat of murder to enforce its rules within the gang and maintain a position of power inside and outside of prison. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit. Once released from prison, ABT members and associates continued to engage in criminal activity on behalf of the enterprise.
Court documents portray the ABT as a highly structured organization run by five generals, each of whom oversees one of five geographic regions of Texas and sits on a steering committee. Each general supervises two chains of command —one on the “inside” and one on the “outside” of prison. Reporting to each general is an “inside major” and an “outside major” and each major oversees several captains, lieutenants and sergeants-at-arms and numerous soldiers.
In this prosecution, all five active ABT generals have been convicted, as well as one “acting” general and one former general and founding member. In addition, the majors, captains and other leaders of the gang from each of the five regions – including Duke – were convicted.
ABT enforced its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated ABT rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, referred to as “direct orders.” For example, according to court records, ABT leaders ordered a subordinate to kill a rogue ABT prospect and return the victim’s severed finger as a trophy, engaged in planning to kill a police officer, and ordered the murder of an individual whom the ABT believed had stolen drugs from the enterprise.
Duke, Wall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. While females are not allowed to become members of the ABT, Wall and other women convicted in this case associated with the ABT, served as communication hubs for the gang, and engaged in criminal activity for the benefit of the ABT.
By pleading guilty to racketeering charges, Duke and Wall admitted to being members of the ABT criminal enterprise. They are both scheduled to be sentenced on Oct. 29, 2014.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Ed Gallagher and Tim Braley of the U.S. Attorney’s Office for the Southern District of Texas.
All 36 Charged ABT Members and Associates Convicted of Federal Racketeering Charges in the Southern District of TexasRead the Press Release
73 Convicted Across Five Federal Districts, Including All Five Active ABT Generals, Effectively Dismantling Organization
HOUSTON – The remaining two defendants of 36 accused in the Southern District of Texas of racketeering activities as part of their roles with the Aryan Brotherhood of Texas (ABT) have pleaded guilty, capping a six-year sweeping effort that has led to 73 convictions across five federal districts and the decimation of the gang’s leadership and violent members and associates. Those convicted were charged with involvement in a criminal organization that engaged in murders, kidnappings, brutal beatings, fire bombings and drug trafficking.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert W. Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Houston Field Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division and Special Agent in Charge David M. Marwell of the Homeland Security Investigations’ Dallas Field Division made the announcement.
“Today, public safety is the winner,” said Magidson. “A significant blow to the ABT criminal activities culminated today with the convictions of all 36 as charged in relation to this significant racketeering activity. Only with a coordinated federal, state and local law enforcement effort, could these criminals’ extensive and heinous gang activities be brought before the bar of justice.”
“The Aryan Brotherhood of Texas launched its murderous and racist ideology within the Texas prisons, but unleashed a violent crime wave that jumped the prison walls and spread like a virus,” said Caldwell. “Today we are announcing sweeping convictions that strike at the heart of the ABT gang: 73 convictions in five federal districts, including the five active generals who ran the organization with an iron fist. These convictions will ensure that these ABT gang members, from generals to soldiers, spend their years in federal prison paying for their crimes, not committing new ones.”
Rusty Eugene Duke, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Tammy Melissa Wall, of Otto, N.C., pleaded guilty to the same charge on Aug. 6, 2014. Duke and Wall are two of 36 defendants charged in the Southern District of Texas with conducting racketeering activity through the ABT criminal enterprise, among other charges. With Duke’s plea today, all 36 defendants have pleaded guilty.
The 36 convicted are part of a larger, six-year effort that has led to the conviction of 73 ABT members and associates in cases brought in the Southern District of Texas, Eastern District of Texas, Western District of Texas, Northern District of Texas and Western District of Oklahoma.
“Today marks a great day for the citizens of Texas,” said Elder. “As they go about their daily lives, they can rest easier knowing that law enforcement across the state is working tirelessly to keep them safe from violent criminals. Finally, this investigation is a great example of ATF’s Frontline Model, which seeks to go after the very worst offenders by maximizing all of our resources.”
“While these convictions have dealt a serious blow to the gang, there are always others waiting to take their place in the organization,” said FBI Special Agent in Charge Turner. “We have a message for them too: Violence and intimidation will not rule the streets of Houston. The FBI and our law enforcement partners will relentlessly pursue gang leaders and their associates at every level to ensure the safety of our communities.”
Court records and admissions by the defendants have exposed the ABT as a race-based, Texas state-wide organization operating inside and outside of state and federal prisons throughout Texas and the United States. Established in the early 1980s within the Texas prison system, the gang modeled itself after, and adopted many of the precepts and writings of, the Aryan Brotherhood, a California-based prison gang formed in the California prison system during the 1960s. The ABT was primarily concerned with the protection of white inmates and the promotion of whites as a superior race. The ABT used murder and the threat of murder to enforce its rules within the gang and maintain a position of power inside and outside of prison. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit. Once released from prison, ABT members and associates continued to engage in criminal activity on behalf of the enterprise.
Court documents portray the ABT as a highly structured organization run by five generals, each of whom oversees one of five geographic regions of Texas and sits on a steering committee. Each general supervises two chains of command —one on the “inside” and one on the “outside” of prison. Reporting to each general is an “inside major” and an “outside major” and each major oversees several captains, lieutenants and sergeants-at-arms and numerous soldiers.
In this prosecution, all five active ABT generals have been convicted as well as one “acting” general and one former general and founding member. In addition, the majors, captains and other leaders of the gang from each of the five regions – including Duke – were convicted.
ABT enforced its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated ABT rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, referred to as “direct orders.” For example, according to court records, ABT leaders ordered a subordinate to kill a rogue ABT prospect and return the victim’s severed finger as a trophy, engaged in planning to kill a police officer, and ordered the murder of an individual whom the ABT believed had stolen drugs from the enterprise.
Duke, Wall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. While females are not allowed to become members of the ABT, Wall and other women convicted in this case associated with the ABT, served as communication hubs for the gang, and engaged in criminal activity for the benefit of the ABT.
By pleading guilty to racketeering charges, Duke and Wall admitted to being members of the ABT criminal enterprise. They are both scheduled to be sentenced on Oct. 29, 2014.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Homeland Security Investigations; Drug Enforcement Administration; U.S. Marshals Service; Bureau of Prisons; Texas Rangers; Texas Department of Public Safety; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s offices in Montgomery, Harris, Atascosa, Orange, Waller, Galveston and Tarrant Counties; Police Departments in Houston, Alvin, Carrollton, Mesquite, Baytown and Fort Worth; and District Attorney’s offices in Montgomery, Atascosa and Harris Counties.
The case is being prosecuted by Assistant U.S. Attorney’s Tim Braley and Ed Gallagher and David Karpel of the Criminal Division’s Organized Crime and Gang Section.
Albany Ga., Man Sentenced to Federal Prison for Stealing Children's Social Security BenefitsRead the Press Release
GAINESVILLE, Ga. - Christopher Castleberry has been sentenced to one year and six months in prison after pleading guilty to stealing his children’s Social Security Survivor’s benefits.
“This defendant stole his sons’ benefits and left them to be raised by their maternal grandparents while he continued to receive and spend their money,” said United States Attorney Sally Quillian Yates. “We hope that this sentence gives the boys a small measure of comfort to know that the defendant will answer for his crime against them.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant became the representative payee for his two minor sons’ Title II Survivor’s benefits after his wife died in 2001. In 2009, the children moved in with their maternal grandparents and the defendant continued to receive their benefits. The defendant refused to sign the appropriate paperwork that would have allowed the grandparents to enroll the boys in high school. Because of the defendant’s refusal, the boys were unable to attend or finish high school. The defendant did, however, complete paperwork falsely swearing to the Social Security Administration that the boys continued to reside with him and that he spent their benefits on their care and support.
Castleberry, 49, of Albany, Ga., has been sentenced to one year and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $46,200. Castleberry pleaded guilty to these charges on June 2, 2014.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
34-Year Old Career Offender Sentenced to over Fifteen Years in Federal Prison for Methamphetamine DealingRead the Press Release
PORTLAND, Ore. - U. S. District Judge Marco A. Hernandez sentenced Portland-area man, Steven Lee Gill, to 188 months in federal prison on August 13, 2014. In January 2014, Gill pleaded guilty to possession with intent to distribute methamphetamine. His sentence was increased because he was found to be a “career offender,” under federal sentencing law, based on his lengthy criminal history that included convictions for crimes of violence.
“This sentence will incapacitate this career offender and protect the public,” said U.S. Attorney Amanda S. Marshall. “Federal law requires long sentences where drug dealing, firearms, and a significant criminal history come together at sentencing. This case demonstrates that career criminals will go to prison for a very long time when they end up in federal court.”
Portland Police arrested Gill, who is also known as Steven Schaible, on November 2, 2012 who was found in possession of large quantities of methamphetamine and heroin and two firearms, in a car he operated alone. Gill had seven previous adult felony convictions, including drug delivery, assault and a conviction related to a drive by shooting, at the time of his arrest. Gill admitted to Portland Police officers that he was a methamphetamine and heroin dealer and possessed a .45 caliber handgun and 12-gauge shotgun for protection. In addition to the over-fifteen year prison term, Judge Hernandez ordered that Gill will face supervision by federal authorities for five years after his sentence is served.
The case was investigated by Portland Police Bureau and the Drug Enforcement Administration and prosecuted by Assistant U. S. Attorney Thomas H. Edmonds.
12 August 2014
Williamsville Business Owner Convicted on Multiple Charges of Tax FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Carlo J. Marinello, II, 68, of Williamsville, N.Y., was convicted by a federal jury of one count of obstructing and impeding the due administration of the Internal Revenue Code, four counts of failing to file personal income tax returns, and four counts of failing to file corporate tax returns with the Internal Revenue Service. The charges carry a maximum sentence of three years in prison, a fine of $250,000 or both.
Assistant U.S. Attorneys Russell T. Ippolito, Jr. and John E. Rogowski, who handled the prosecution of the case, stated that Marinello was the manager and owner/operator of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to commercially transport letters and documentation between businesses in New York and Canada. The business earned hundreds of thousands of dollars in revenues but the defendant failed to file tax returns for the company or personal tax returns for earned income.
According to the Government’s evidence, Marinello hid the income and obstructed and impeded the due administration of the Internal Revenue Code by: (1) failing to maintain corporate books and records for Express Courier; (2) failing to provide his accountant with complete and accurate information related to the defendant’s personal income and the income of Express Courier; (3) destroying, shredding and discarding business records of Express Courier; (4) cashing business checks received by Express Courier for services rendered; (5) hiding income earned by Express Courier in personal and other non-business bank accounts; (6) transferring assets to a nominee; (7) paying employees of Express Courier with cash; and (8) using business receipts and money from business accounts to pay personal expenses, including the mortgage for the residence in which the defendant resided and expenses related to care for Marinello’s mother care at a senior living center.
The defendant failed to file personal income tax and corporate tax returns for tax years 2005 through 2008.
Sentencing is scheduled for November 24, 2014 at 9:00 a.m. before Chief U.S. District Judge William M. Skretny who presided over the trial.
The verdict is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.Two Rupert Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
POCATELLO – Lloyd Elmo Gale, 53, and Linda Rae Westmoreland, 51, both of Rupert, Idaho, were sentenced to federal prison today for trafficking methamphetamine, U.S. Attorney Wendy J. Olson announced. Gale was sentenced to serve 87 months imprisonment, to be followed by five years of supervised release. Chief U.S. District Judge B. Lynn Winmill also ordered Gale to forfeit cash proceeds in the amount of $100,000. Gale pleaded guilty on May 28, 2014, to one count of unlawful possession of a firearm and conspiracy to distribute methamphetamine. Judge Winmill sentenced Westmoreland to serve 36 months in prison, to be followed by four years of supervised release. Westmoreland pleaded guilty on April 23, 2014, to one count of distributing methamphetamine.
Gale was found to have distributed just under 100 grams of pure methamphetamine, while Westmoreland distributed approximately 74 grams of pure methamphetamine. Gale, a convicted felon, also sold two stolen firearms to a confidential informant. A third co-defendant, Jose Rosario Juarez, has a scheduled change of plea hearing on August 27, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minidoka County Sheriff’s Office, and the Idaho State Police.
Two Greenbrier County Men Plead Guilty in Bluefield to Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two Greenbrier County men pled guilty in federal court in Bluefield, West Virginia to federal drug charges, Roger Lee Deem, 60, of Ronceverte, pled guilty to using a telephone to facilitate a drug felony. Deem admitted that on April 25, 2014, he had a telephone conversation with David Eldon Williams to make arrangements for the purchase of oxycodone pills. Williams, 54, of Lewisburg, also pled guilty to using a telephone to commit a drug felony, admitting that on the same day, he had a conversation with Deem about buying oxycodone pills. These conversations took place while the men were in Greenbrier County. On April 26, 2014, the two men traveled to Princeton, West Virginia to obtain 375 30 milligram oxycodone pills from a confidential informant, where they were arrested by authorities. Deem and Williams face up to four years in prison and a $250,000 fine when they are sentenced on December 16, 2014.
The investigation was conducted by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier County Heroin and Pill Initiative. The Southern Regional Drug and Violent Crime Task Force provided assistance. The prosecution is being handled by Assistant United States Attorney John File.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Turkish Man Pleads Guilty to Smuggling Adulterated Cancer DrugsRead the Press Release
St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, pled guilty today to smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) sent from Turkey to Chesterfield, Missouri.
Akman entered his plea before United States District Judge Audrey G. Fleissig in St. Louis, MO. He now faces a penalty range of up to twenty years in prison. In his plea agreement, Akman agreed to pay a fine of $150,000 if imposed by the Court, plus a $150,000 forfeiture payment to the United States. Sentencing has been set for November 18, 2014.
According to Akman’s plea agreement, Akman, through his company and employees, used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" with no or low declared monetary values. Some cancer chemotherapy prescription drugs sent by defendant to the United States from Turkey had different lot numbers on the exterior packaging of the drugs than the lot numbers found on the actual vials of the drug inside the packages. Additionally, Akman shipped some prescription drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever.
Further, Akman admitted in his plea agreement that his company and employees sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (FDA-OCI) previously seized Altuzan® from various physician/customers of Taylor in 2012, and ultimately determined that this Altuzan® from Taylor and Semizoglu actually contained mold and water, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu.
"Of all U.S. consumers, those with cancer are among the most vulnerable and most in need of proven effective treatments. To prey on that vulnerability is to exploit the health of those individuals and of the public at large," said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. "OCI commends its colleagues - international, national, state and local - for their collaborate efforts in bringing this criminal to justice."This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service, Rosa Emilia Rodríguez-Vélez , the United States Attorney for the District of Puerto Rico, the Office of Inspector General for the U.S. Department of Health and Human Services, the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory, Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police, the German State Criminal Police (Landeskriminalamt, LKA), the U.S. Department of State’s Diplomatic Security Service, the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration, Istanbul Resident Office.
Toledo Man Charged with Theft of Government PropertyRead the Press Release
A Toledo man was charged with one count of theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Richard Arens, II, age 38, withdrew approximately $93,373 for his personal benefit from the bank account of his deceased mother between December 2007 through August 2013, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Social Security Administration Office of Inspector General. The case is being handled by Assistant United States Attorney Ava Dustin.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tennessee Man Sentenced to Two Consecutive Life Sentences for the Robbery and Murder of Postal WorkersRead the Press Release
Chastain Montgomery, Sr., 50, of Lavergne, Tennessee, was sentenced to two consecutive life sentences and ordered to pay $70,400 in restitution for federal crimes committed during a six-month spree that included the murders of United States Postal Service employees Paula Robinson and Judy Spray.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Edward L. Stanton III for the District of Western Tennessee, Inspector in Charge Thomas Noyes of the Postal Inspection Service Charlotte Division and Director Mark Gwyn of the Tennessee Bureau of Investigation made the announcement. The sentence was imposed by Senior U.S. District Judge Jon P. McCalla of the Western District of Tennessee.
“With the help of his son, Chastain Montgomery, Sr. heartlessly murdered two U.S. postal employees and put countless others at risk during a violent six-month crime spree that included armed bank robbery and kidnapping,” said Assistant Attorney General Caldwell. “No sentence can pay for the loss of a loved one, but we hope this prosecution has helped bring some sense of closure to the victims’ families.”
“The senseless and heinous murders of Paula Robinson and Judy Spray have left an irreplaceable void throughout the entire community,” said U.S. Attorney Edward Stanton. “I want to commend the tireless efforts of federal, state, and local law enforcement who assisted with the investigation and prosecution of this case. The life sentence without the possibility of parole imposed upon Chastain Montgomery, Sr. today will hopefully bring justice and a meaningful measure of closure to the Spray and the Robinson/Croom families.”
“Today’s sentence of Chastain Montgomery, Sr. once again shows the determination of the U.S. Postal Inspection Service to bring criminals to justice who take the lives of postal employees,” stated Inspector in Charge Thomas Noyes. “The cooperation among federal, state, and local law enforcement was second to none. We are fortunate to have such determined law enforcement partners who are willing to work countless hours to see these criminals identified and prosecuted.”
According to the facts alleged in the superseding indictment and revealed during subsequent hearings, on Oct. 18, 2010, Montgomery, Sr. and his son Chastain Montgomery, Jr. drove from Nashville, Tennessee to Henning, Tennessee, robbed the United States Post Office, and then murdered Sales and Service Associate Robinson and Rural Carrier Associate Spray.
Following their crimes, the Montgomeries returned to Nashville. Eight days later, Montgomery, Jr. stole a Nissan Frontier pick-up truck in Smyrna, Tennessee and used it as the getaway vehicle following their robbery at gunpoint of Southeast Financial Credit Union in Lavergne on Oct. 29, 2010.
One month later on Nov. 29, 2010, the pair stole a Chevy Venture minivan and used it as a getaway vehicle following the robbery at gunpoint of Mid-South Bank in Smyrna, Tennessee.
On Feb. 14, 2011, the pair made plans to leave the Middle Tennessee area. Montgomery, Jr. carjacked a man, stole his Chevrolet pick-up truck, and drove it from Nashville to Mason, Tennessee. During the journey he was observed by Chief Deputy Sheriff Mike Smothers of the Haywood County Sheriff’s Department, who began a vehicular pursuit.
Chief Deputy Smothers reported that Montgomery, Jr. began driving at an excessive rate of speed and veered into other lanes in what appeared to be an attempt to cause an auto accident. Chief Deputy Smothers was joined in his pursuit by Mason Police Chief J. C. Paris.
When Montgomery, Jr. entered the town of Mason, he exited his vehicle and began shooting at members of law enforcement and innocent civilians outside a nearby market. Chief Deputy Smothers returned fire and struck Montgomery, Jr. who died at the scene.
Law enforcement immediately cordoned off the crime scene and began processing evidence. While doing so, officials noticed Montgomery, Sr. cross the crime scene barrier and begin moving toward the Chevy truck driven by his son. He was taken into custody and transported to the Tipton County Sheriff’s Department. While there, Montgomery, Sr. was interviewed by United States Postal Inspectors and made a full confession to all of his crimes.
Law enforcement confiscated a number of weapons and other items from the Mason crime scene, including the Ruger 9mm pistol and the Smith & Wesson .40 caliber pistol used to kill Robinson and Spray; a .45 caliber Glock pistol; a .380 pistol; two Mossburg 12 gauge shotguns; a Remington 12 gauge shotgun; a Springfield 9mm pistol; a Rossi .357 Magnum revolver; large amounts of ammunition; ski masks and latex gloves.
On May 22, 2014, Montgomery pleaded guilty to seven federal crimes, including murder, robbery, conspiracy to rob postal employees, banks, and credit unions, and use of a firearm in the commission of a violent offense.
This case was investigated by the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Tennessee Highway Patrol; 25th District Attorney General Mike Dunavant’s Office; the Lauderdale County Sheriff’s Department; the Tipton County Sheriff’s Department; the Haywood County Sheriff’s Department; the Mason Police Department; the Henning Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the FBI; the United States Secret Service; the Tennessee Department of Correction; the U.S. Marshals Service; the Lavergne Police Department; the Smyrna Police Department; and the Metropolitan Nashville Police Department.
This case is being prosecuted by U.S. Attorney Edward L. Stanton III; Assistant U.S. Attorney Tony Arvin; Assistant U.S. Attorney Lorraine Craig; Assistant U.S. Attorney Stuart Canale and Trial Attorney Michael Warbel of the Criminal Division’s Capital Case Section.Superseding Indictment Handed Down Against a Rochester Man for Threatening to Kill the President, Governor, Lieutenant Governor, and Rochester MayorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a seven-count superseding indictment charging Brandon Correa, 30, of Rochester, N.Y., with making multiple direct threats to kill the President of the United States, Barack Obama. The defendant is also charged with making multiple online threats to kill New York Governor Andrew Cuomo, New York Lieutenant Governor Robert Duffy, and Rochester Mayor Lovely Warren. Each count is punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, the defendant, who had previously been indicted for posting online threats to kill President Obama, Governor Cuomo, and Lieutenant Governor Duffy in June, made and posted new threats against them following his arraignment on those charges last week. Correa also made new online threats against Rochester Mayor Lovely Warren. The defendant was interviewed following the June threats and told a Secret Service Agent that the President had to “die.”
The defendant will be arraigned later this week before U.S. Magistrate Judge Marian W. Payson.
The superseding indictment is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins, and Investigators from the Rochester Police Department, Major Crimes Unit, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Silver City Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Gabriel Anthony Saiz, 21, of Silver City, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in federal prison followed by two years of supervised release for the unlawful possession of an unregistered short-barreled rifle with an obliterated serial number. The sentence was announced by U.S. Attorney Damon P. Martinez, 6th Judicial District Attorney Francesca Martinez-Estevez, Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Ed Reynolds of the Silver City Police Department.
U.S. Attorney Damon P. Martinez said that Saiz and his co-defendant were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“I would like to commend the Silver City Police Department for their excellent work in protecting the community from these violent offenders,” said 6th Judicial District Attorney Francesca Martinez-Estevez.
Saiz and his co-defendant Javier J. Reyes, 20, of the Village of Santa Clara in Grant County, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two subsequently were indicted and charged with possession of an unregistered short-barreled rifle, and possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number on Nov. 27, 2012, in Grant County, N.M.
Court filings reflect that Saiz and Reyes were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Saiz and Reyes at approximately 9:00 p.m. that night because the victim of the armed robbery provided the license plate number for the vehicle in which Saiz and Reyes were driving. When the officers arrested the men on state charges, they observed a firearm on the floor board under the front passenger seat. The state charges against the defendants subsequently were dismissed in favor of federal prosecution.
Saiz pled guilty in Sept. 2013 to both counts of the indictment.
Co-defendant Reyes was released pending trial following his arrest. While on release, Reyes was arrested on Oct. 25, 2013, for receiving a firearm while under indictment. On Dec. 6, 2013, Reyes pled guilty to the indictment. He was sentenced to 48 months in federal prison followed by three years of supervised release on June 25, 2014.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department, with assistance from the 6th Judicial District Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Selby Man Charged with Sexual Exploitation of A Child and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Selby, South Dakota, man has been charged by Criminal Complaint with the offenses of Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors.
Christopher R. Jansen, age 34, made his initial appearance upon the Criminal Complaint on Monday, August 11, 2014, and appeared before U.S. Magistrate Mark A. Moreno.
For Sexual Exploitation of a Child, Count 1, the maximum penalty upon conviction is up to 30 years in custody, with a mandatory minimum of 15 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. For Distribution of Material Involving the Sexual Exploitation of Minors, Count 2, the maximum penalty upon conviction is up to 20 years in custody, with a mandatory minimum of 5 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count 1 alleges that between June 2011 and December 2013, Jansen used a minor to produce visual depictions of sexually explicit conduct. Count 2 alleges that between December 1, 2013 and July 27, 2014, Jansen knowingly distributed visual depictions of a minor engaged in sexually explicit conduct.
The charges are merely an accusation and Jansen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation, with assistance from the Walworth County Sheriff’s Office and the Mobridge Police Department. Assistant U.S. Attorney Tim Maher and Keith Becker, a Trial Attorney with the Child Exploitation and Obscenity Section of the Department of Justice, are prosecuting the case.
Jansen was remanded to the custody of the U.S. Marshals Service pending further hearings. A trial date has not been set.
Sanford Man Pleads Guilty to Manufacting Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today BAILEY JOE MILLS, 34, of Sanford, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d). MILLS was named in a Criminal Information on June 12, 2014.
According to the investigation, in or about January 2014, MILLS did videotape himself having sex with a 13 year old girl. On January 5, 2014, a search warrant was executed at MILL’S home, where several laptops, external harddrives, and cell phones were seized. Computer forensics located videos taken by MILLS on his cellphone of himself sexually molesting several of juvenile victims, including two toddlers in his care at the time. In addition to the videos, approximately 10,000 images of child pornography were found on MILLS computers, as well as 100,000 images of child erotica and adult pornography.
At sentencing, set for November 4, 2014, MILLS faces a mandatory 35 years up to life sentence due to his two prior sex convictions.
The criminal investigation of this case was conducted by the United States Immgigration and Customs Enforcement’s Homeland Security Investigations - Raleigh, the North Carolina State Bureau of Investigation, and the Harnett County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Russian Man Charged with Identity Theft and Counterfeiting Social Security CardsRead the Press Release
A federal grand jury returned an eight-count superseding indictment charging Sergei Davidoff, aka Sergiu Davidov, aka Sammy Davidoff, aka Sergio Da Vido, age 53 and a native of Siberia, Russia, with multiple counts of identity theft, fraudulent use of credit cards and identification documents, counterfeiting Social Security cards, and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The superseding indictment alleges that Davidoff possessed devices and programs used to create false identification documents. Davidoff also acquired and produced numerous false identification documents and counterfeit or unauthorized credit cards, according to the indictment.
Through these unauthorized and counterfeit cards, defendant purchased merchandise and services valued at more than $1,000. It further alleges that the defendant created counterfeit Social Security cards and committed aggravated identity theft against three individuals between 2009 and 2014 as part of his scheme, according to the indictment.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Secret Service, the Ohio State Highway Patrol, and the Medina Police Department.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.